Tag: Canada

  • Tesla Model Y Price Cut: Navigating Canada Tariffs as Delays Grow

    Tesla Model Y Price Cut: Navigating Canada Tariffs as Delays Grow

    Key Takeaways

    1. Tesla has cut the price of the Model Y in Canada by CA$20,000, reducing it from CA$84,990 to CA$64,990.
    2. Delivery times for the Model Y have increased, with customers facing waits from a few weeks to September-October.
    3. The price drop and delivery delays may be influenced by a 25% tariff imposed on US goods by Canada.
    4. Tesla plans to import Model Y units from its Berlin Gigafactory to avoid high import tariffs and regain market share.
    5. European car imports to Canada do not face tariffs, while vehicles from Tesla’s Giga Shanghai factory incur a 100% tariff.

    Tesla has made a significant change to the price of the Model Y in Canada, slashing it by a remarkable CA$20,000. This reduction brings the price down from CA$84,990 (which is about 62,025 US dollars) to CA$64,990. In the US, the same Model Y Long Range RWD model has a starting price of $48,990, which is more than 20% lower than the Canadian price.

    Delivery Delays

    Alongside this major price cut, there’s been a noticeable increase in delivery times. Customers now face a wait that stretches from a few weeks to the September-October timeframe. To help ease the waiting period, Tesla has also introduced a new color option for the Model Y called Diamond Black, which was previously only available in the US.

    Tariffs Impacting Prices

    The significant price drop and the extended delivery time suggest that tariffs might be influencing these changes. Canada imposed a 25% reciprocal tariff on US goods following similar actions taken by the Trump administration. This tariff had previously caused Tesla to raise its prices in Canada back in May.

    Since then, Tesla has been managing to sell vehicles at prices prior to the tariffs, but that advantage is fading fast. The combination of a steep 25% price hike due to tariffs and Elon Musk’s controversial political stance in Canada has led to a sharp decline in sales in the region.

    Importing from Europe

    To regain some market share, Tesla is expected to start importing Model Y units from a factory that will only incur transportation fees, avoiding high import tariffs. The Berlin Gigafactory, which produces only Model Ys, appears to be the best option to navigate around the tariff issues in Canada.

    Interestingly, European car imports to Canada do not face tariffs, thanks to the CETA trade agreement signed between Canada and the EU. In contrast, vehicles imported from the Giga Shanghai factory now face a 100% tariff, while those from Giga Texas or Fremont have a 25% tariff due to reciprocal trade measures.

    The Trump administration has announced plans to escalate tariffs to 35%, with an additional 35% if Canada retaliates, which would make importing from the US even more impractical.

    This situation explains Tesla’s strategy to shift imports from Europe to bypass the newly established tariff barriers, resulting in longer wait times for Canadian customers awaiting their new Model Y as the company works to stabilize inventory levels and reduce delivery delays.

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  • Kia EV5 Won’t Launch in the US: Official Announcement

    Kia EV5 Won’t Launch in the US: Official Announcement

    Kia has announced that the EV5 will not be released in the US market. The vehicle made its debut at the Chengdu Motor Show in 2023 and subsequently launched in China later that same year. In 2024, an international version was introduced, with rumors suggesting it might be available in Canada, Australia, New Zealand, and Mexico.

    Exclusivity in Canada

    In a recent statement, Kia confirmed that the EV5 will be exclusive to Canada within North America. This decision seems to eliminate the possibility of launches in both the US and Mexico, despite earlier reports that suggested otherwise. Regrettably, the company hasn’t provided any explanation for this choice.

    Affordable, Yet Stylish

    Kia markets the EV5 as an “affordable option” featuring a design akin to the EV9 but with a more compact size. Customers can choose from eight different colors and several trim levels. The base model will be a front-wheel drive electric vehicle equipped with a 60.3 kWh battery. Additionally, there will be all-wheel drive versions that offer an extended range due to an 81.4 kWh battery. Inside, the five-door EV boasts a 30-inch panoramic display for the driver, seating for five, and adjustable mood lighting. Kia also highlights the ample storage available in both the trunk and frunk, with the rear seats capable of folding flat.

    Charging Convenience for Canadians

    Though the compact SUV won’t be available in the US, Canadian buyers will benefit from access to Tesla Superchargers throughout both the US and Canada, thanks to the integrated North American Charging Standard (NACS) port. The Kia EV5 is anticipated to reach Canadian dealerships sometime in 2026. While official pricing has not yet been disclosed, it is projected to be priced between $40,000 and $50,000. The new model will also be showcased at the Canadian International Auto Show in Toronto, starting on February 14th.

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    Kia EV5 Won't Launch in the US: Official Announcement

     

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  • TikTok Offices in Canada Shut Down Over Security Concerns

    TikTok Offices in Canada Shut Down Over Security Concerns

    Last year, the Canadian government began examining the expansion strategy of ByteDance Ltd., the firm responsible for TikTok, which intended to establish a local branch named "TikTok Technology Canada Inc." Unfortunately, this initiative was halted as the government opted to eliminate TikTok’s business operations in the nation, which also results in the loss of hundreds of local jobs. On a positive note, Canadians can continue to access the website and utilize the mobile applications, at least for now.

    Government Statement

    In a statement from Canadian Innovation Minister Francois-Philippe Champagne, he mentioned, "The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners." Clearly, this does not prevent TikTok from challenging this ruling in court, hoping for a more favorable outcome.

    App Accessibility

    While everyday users can access TikTok without restrictions, the app has been prohibited on devices issued by the government. Officials have described it as having "an unacceptable level of risk to privacy and security," which was the reasoning behind this ban.

    Ongoing Legal Battles in the US

    In the United States, the Chinese social media company is currently contesting a law from the Biden administration that mandates ByteDance to divest TikTok by January 19th or face a potential ban. U.S. officials assert that the Chinese ownership of the company poses a risk to national security.

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